. just about 30 minutes ago the dow dropped 133 points in just one minute, after the associated press twitter feed was hacked and said there had been two explosions at the white house. we have complete coverage. every story angle on this breaking news, and folks there are a lot of potential angles here. most of them have to do with the

grows power of twitter and how to best protect you, the investor. eamonafter, bob pisani, julia boorstin, but first let's get the facts on what happened here. eamonafter, it was the tweet literally heard around the world and on every trading desk in america. >> that's absolutely right, brian. that the president was hurt, that set off a series of events, including a shatter market decline that you heard about, also a bit of a cramible here in washington. the tweet itself just didn't have the kind of ring of professional sound to it in a lot of journalists' ears, so a lot of people were immediately skeptical. we check and saw our constant live news feed of the white house and the emperor showing no problem. then a few moments later, associated press, which traditional gets the first question at every white house press briefing was in fact

called on at the briefing. and they were able to clear it up right away for everyr everyone watching. take a lynn to that moment. that will show you how the associated press a -- >> i can say the president is fine. i was just with him. >> that's jay carney responding there. the question that the associated press reporter initially put to jay carney just before that bite we saw, she said that the associated press had been hacked on the twitter account and that the report was false. she cleared it up, and then karney offered that responsibility. that's how it played out here in washington. it was very interesting what you were saying about the tweet sounded unprofessional, so therefore there were skeptics. nonetheless, bob pisani, the market reacted,ened it was quite scary how quickly. surely humans can't affect the market that quickly. to what degree was it the computers kicking in here?

>> very much the computers here. let me show you how fast it happened. it was about 1:07, mandy when we had the first word of the twitter account. down here on the floor, i can tell you the market moved faster than the traders themselves could react. i was stander here. people said, what happened? and we started looking for the sources. about 140 points in the dow. it occurred in less than two minutes. look at the s&p futures. and you can see the drop down, pretty similar overall. people wonder, how do you get a market to react in 20 or 30 seconds, you get a drop of 140 points. the programs have different ways to work. one it on keyword recognition, when you hear or see the word explosion and white house at the same time, you sell. the other is trend following programs. when the market is moving down very, very rapidly, you keep selling into it, then when you sense a bottom, you buy at the bottom. remember it's buy low, sell high, they programs can detect these in microseconds. a lot of debate about the

computers, but more importantly debate about internet security and twitter security, these programs have been hacked before. we've seen that with cbs, we saw that with npr about a month ago. mandy, back to you. >> certainly not the first time it's happened, but obviously a lot of eyeballs this time. thanks, bob. >> let's bring in julia boorstin. my question is more of amorphous. when this happens, right, i know you're inside of twitter, you know the folks that run the company. what happens there? this was an a.p. issue, but a.p.'s got to get on the horn to twitter and say, shut it down, we've got to -- you've got to stop the bleeding first. do we know what the process is that occurs when something like this happens? >> well, first, i think you're right, it does seem to be an a.p. issue, someone just probably figured out the password or did what we call a phishing expedition, where it allows someone to give away the password to let someone take control. what probably happens is they

get on the phone with twitter, say someone has hacked our account, we need you to shut it down. the issue is this isn't a twitter issue. twitter will, though, i expect in the wake of this occasion, encourage people to change their passwords more frequently. hink a big problem is when you have an account like the a.p. account with multiple people communicating, the passwords tend to be pretty easy, because you want multiple people to remember the passwords. >> very interesting stuff. thank you very much for that, julia. let's bring in security analyst and former prosecutor mark rash. good to have you back on the show. i would really like to know how going forward twitter will be able to protect the accounts of particularly sensitive or market-moving accounts like a.p., like perhaps a company that is putting out an erroneous earnings report. how will we be able to safe in the future on twitter? >> well, this is a problem for every news outlet that tries to

use multiple means of getting the information out and they are vulnerable to attack. the best things to do is have strong passwords which they share with a small group of people that they regularly monitor those passwords and monitor the own twitter feet for anything unusual so they can respond quickly. >> but even if i change a password regularly, or a really hard one, can hackers still get in? >> of course they can what you'll try to do is throw off a barrier. to mandy's point, the s.e.c. recently permitted in the via twitter as as in dissemination source. we know a lot of media directors tending to on the younger side. you can see room for problems

here, can you not? >> absolutely. this is an interesting problem. this isn't the problem with a.p.'s own security, their own network was fine and it was security. it was a.p.'s feed on twitter. that's the problem. once you start using social networking and social media for getting out this critical information, whether it's information that would normally be in a 10k report or information nomarally published in a nub, that kind of critical information, you have to consider the feed as critical as well, and you have to secure that with the same diligence that you secure your own networks. we have no idea whether this came from inside of a.p., whether it came from outside, outside the country, who knows where it came from, it doesn't really matter. >> there are lots of way toss do it. >> exactly. let me give you an example. as eamon javers said, this tweet when it came out, we were like, this doesn't look real, the language doesn't appear right. in i hacked into a big company's

twitter feed, and i put out a tweet that looked real, used corporate-speak, maybe said we are missing earnings, and the stock tanks, that company may not discover that for a few minutes, and mom and pop are getting wiped out. if they sell and it's fake, how do they get their money back? you wonder if the s.e.c. maybe needs to rethink this. >> it's worse than that. you can set up a fake twitter account in the name of the company. the company may not know it exists. that gets picked up on the real twitter account or other people's tweets and has the same practical effect. >> i would really like to know going forward whether or not it has any impact on how much we use social media. i don't know if this is in your jurisdiction, but based on your experience where people are involved in some kind of activity, and then there's multiple accounts, say credit card fraud. i've been a victim of credit

card fraud, i still use my credit cards despite a lot of reports about people's accounts become hacked, will people pull away or think this is part of the world we live in? >> i think we need to built in a certain amount of skepticism in the market, and not accept everything that they say as necessarily being true. the problem is everybody wants to be the first to respond and react, because that's where you can make money, if you can respond quickly. so if you wait to validate something, you've lost that competitive advantage. people automatically respond. when humans actually read this, they said this doesn't look right to me, let's go confirm and figure on the if this was true. if it had been true, and you could post something like the ceo of a company was. >> we're going to bring in julia boorstin. thank you, mark. as you point out, mark, that is a lot easier, a one-line tweet

than putting out a fik press release, which is harder and easier to spot. >> julia, you have the rules of twitter. what does go on? >> that's right. right now i'm looking at a piece of paper. when there were some hacked tweets back in february of some big brands, including burger king, twitter directed us to the basic rules. one of the main things here is it says that twitter will never contact you asking for your password. that's exactly how a lot of these phishing accounts happen. people think it's legitimate that twitter wants them to change their password. twitter is trying to get companies and people to be very careful. this is obviously a big challenge. >> thank you very much for that. just a moment ago -- and right now we're showing you live pictures of the president. he is in the rose garden and not talking about the tweet. in fact, as you can clearly see,

he is fine. he is giving the national teacher of the year award right now. in the meantime two big stock stories moving the market. apple and netflix. jon fortt, what are the three things to look for -- maybe there's 20, but give us three to look for when they report after the bell today. >> limiting me to three things. iphone unit sales, gheitance and margins. on iphone a lot of annuals are twegting between 34 and 38 million. one speed bump for the iphone potential is apple had a significant p.r. headache, when central tv blasted the company's iphone repair policies, a nonstop drumbeat of negative headlines are significant considering china was 12.5% of retch last quarter. an important side story to this report also is guidance. apple switched the way they do guidance, sake they'll give a

range within which to fall in. will they come in close to the revenue as analysts expect, a little higher, that will influence how the street views june guidance. iphone mix. the more i phones apple sells, and the faster it can lower costs, the higher margins will climb. my best guest is apple will deliver up side somewhere on margins rather than revenue. the question is whether they can use it to secure chief components. back to you. >> jon, thank you very much. one prop with apple is declining margins, but when one can wonder, is the company eating, in a way its own margins, but pushing a cheaper product? let's bring in the principal

analyst. rocky, before we get to apple, one question about this whole twitter hack thing. one of my followers said why not if you have an official news feed, require a biometric device, like a fingerprint scanner in 0rd to do a second layer of security to send out from an official feed. would you be in favor of that? >> you know, i wouldn't necessarily do biometric, but two-factor authentication. maybe it's a physical device with a code that you have to punch in, but something needs to be done to tackle this issue. let's go to apple, the issue of margins. mac book air is about $1,000. i'm going for the former. they just ate their own margins, for me. >> i don't know that a lot of people are doing that. i have both. i think they're able to capture much of the lower-end market.

if you look at pc sales, especially in the netbook category, apple didn't have a play in that. apple is very strong in the tab lett space. >> rocky, we have to leave it there, but thank you very much for joining us. netflix shares surging after stronger earns on monday, the best performing stock this year in the nasdaq 100. it wasn't that long ago that netflix said it was going to split into two, and jack up prices, customers as you can imagine were outraged, threatening to leave. they pulled back on the split, but not on the higher rates. so we have a couple guests here now -- no. okay. we'll get them back in just a second. in the meantime two of the big names being thrown around at the yankee stadium today. it is the home of goldman sachs fifth annual symposium. we have our own mary thompson there. what are you hearing? >> reporter: japan is another hot topic here at the fifth annual hedge fund symposium. a source inside the symposium

said attendance is very strong with hundreds of potential clients making their way to hear from 54 of the biggest names in the 2.2 trillion $hedge fund industry. those names are all clients of goldman sachs' prime brokerage unit. they include s.a.c. capital. and others. now, essentially all of this is like speed dating. the ball field inside yankee stadium. the clients will listen and then move on to the next presentation. what are the themes broadband talked about? one asked asking not to be identified, said one is japan. with and you have stimulus being added to the economy.

they talk about tech, saying these wall street's new darling, pointing out the run-up we have seen. and also talking about apple. some fund managers still defending apple, saying it is still the same company it was a year ago. this is an all-day event. earlier today the president and c.o.o. addressed the attend jeans and mayor bloomberg was set to be the keynote speaker. we couldn't confirm that with the mayor's office. again, tech, japan, and specifically apple and netflix getting a lot of attention here. back to you. >> wow, busy day all over the place. on deck, j.c. penney taking another hit. morgan stanley cutting the price target to a single digit. here to tell us why he's more bullish. >> drinking the kool-aid here. everybody's fine. later on, how china's demand for catalytic converters is fueling the largest commodity strayed. stick around to find out what it is. ♪

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luxury good makers reported a quarterly profit, four cents above estimates. it also raised its annual dividend by 15 cents to 1.35 per share, a 13% increase. as you can see in business today. brian? we've been following j.c. penney very closely, but you know that, because you watch

every day. now morgan stanley has lowered the price target from 13 to $9. they foresee disappointing store checks, and the 2013 cash burn that may be, according to morgan stanley likely worse than expected, but there are still those who remain optimistic, even with the in/old/new ceo in place. joining us friend of the jo jan rodgers, and former longtime department store executive. you're sticking by your optimistic guns. what other bad news can come out, jan? >> exactly. nothing really happens, because the world's already expected they're going to -- and some sort of offering that shores up capital. that's going to happen. i think the world thinks it's going to happen. that's why it's hanging around

15. >> would it be fair to say that actually you agree with a lot of points morgan stanley made, except the difference is you already bletist xwakd into the price. >> i've been saying 14%. i'll be happy if they're only down 13. i think their gross margin will be crushed. my bet is in the back half they go positive on store for store sales. if they do i think this is a $25 stock, a $30 stock, if they start running comps in the fourth quarter or sometime in 2014, it could be a $40 stock. >> how do they do that when it's been reported 17% or so of is the customers -- >> a puff of smoke. >> they have to bring them back, reach out to the customer, and they have to put product in the store that that customer will buy when she comes back. >> and it's too soon to say they're starting to come back?

>> way too soon to say they're starting to one back. my projection was back to school, i think after may 5th we'll see better comps. they'll have some new product in the store by back to school, a lot of new product in the store by fourth quarter. i want why bring back -- >> i know it's an older story, but all these executives are leaving/getting pushed out. who is running j.c. penney? >> i think the thing that frightened me the most is the infrastructure has been ripped out, so within windower, when i say they'll have that product back by fourth quarter, are there people there to get the product back? my number one concern is the horse is in the stable and are they strong enough? mike is going as fast as he can to get people in place to make all that happen, but he's trying to do it without adding back a whole lot of expense. >> but it's like joe fresh for example, widely touted roll-out. does the new management team get

on board with the new products and strategy, or literally do they scrap everything ron johnson did, store within a store, new brand, blah blah blah, and go back to what they had been doing. how do they handle it? >> no way. this is the store that michaels wanted. it has great shops, he wanted a younger customer. he brought in force specifically to get a younger customer, and he wants to keep that younger customer, but he has to bring back the former customer as well. >> you will hear on the show when we were reporting the news he was coming back, and you said he can come back a hero. he went out, but he can come back a hero. are you still sticking by that? >> absolutely. >> you have that had confidence in him? >> yes, i do. >> because i think he'll take what's there now, put some promotions back in, bring back couponing, he'll have a better relationship with the vendors than ron had, convincing them,

you'll get paid, we'll work out how we're going to price. it's all going to work. i think they're buying into that. yes, i'm still optimistic that in the back half, i'll win my bet with brian and they will in fact run positive store for store comps. >> and they'll take you in for dinner. >> i don't trust any of you connecticut millionaires like you and greenburg, can't even afford to take me for dinner. >> i'm good for it. >> next time you do a phone one with us, we'll use this graphic, by the way, from 1966. very handsome i want i remember that gentleman, i think i met him once upon a time. >> thank you so much for joining us. jon corzine's sued. will criminal charges ever come down the pike? another mystery mansion competing against a former brothel, as part of our -- the

brothel, by the way, is 3 for 3. but first in honor of youtube's eighth birthday, we'll bring you this viral video gem, an ipad saning that softball fan by getting whacked, boom, by the ball, guess what? the ipad still worked. positive for earnings? >> positive, may be, who knows. at this stage, anything might help. we're back after this. bny mellon combines investment management & investment servicing,

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joining us is sam an tar, the white collar block, self-admittedly, a convicted felon, now advising about white-collar crime, and now kayla tausche, who as far as i know hasn't been convicted of even jaywalking. >> she loose so sweet. >> you never thought reese witherspoon would be arrested, but -- -- i first want to note this is the latest of lawsuits that have been directed to

corzine and the -- his representative said this morning, quote, the suit intentional ignores the failure of counterparties to fulfill their obligations to mf global of course it was the failure to keep up -- but that's neither here nor there at this point. is being grossly negligence jechbt a white collar crime? >> unfortunately it isn't. if you don't put seal belts on kids and you go 80 miles an hour and you slam the car into another car, something's going to be indicted for criminal charges. if you have a public company and you don't exercise good proper controls, instead of injuring little children, you injure shareholders, life savings of people, you're not going to go to jail. >> but to mandy as point, sam, being dumb is not a crime.

>> and how do you -- that you're driving into with the kids in ordering to held accountant for something like that. >> but negligence is not a crime in corporate america, so i tried the same excuse. >> so you say he's going to get off? >> yes, no criminal charges. >> a slap on the wrist? >> i will bet my stolen money from crazy eddie that he's getting off. >> that money is gone, isn't it? >> interestingly enough a lot of the customers are close to being made whole. a lot of creditors will getting their money back because of sale of assets. >> my enit is interesting, still going on, the investigation has stalled, the doj investigation they're pointing their fingers at the treasure you are who actually moved the money, and it's unclear how much further we'll go. >> when it comes to white collar financial crimes, financial accounting irregularities, the

justice department has basically decriminalized them. what they are looking for is fines. what message does that say? >> here's the answer. american banksters if you sell horse meat as pastrami, you're not getting indicted. >> but you have to have somebody that buys it. >> plenty of investors will buy anything. >> that's my point. >> people always listen to what others say. >> how do we iffics that? what i'm saying is you've got a lot of sophisticated people, you and i spoke about bernie madoff. that got taken for years, for years. >> as a criminal-ite, i defer to first skated -- most people are guilty of one thing. they want to believe in hope. that's what the problem is. >> but it was almost the opposite case with mf global. hindsite is 20/20, where they're saying jon core syne was a

gambler, making all these -- but in august, they sold bonds, and said investors said we will owned buy them as a key man clause. they would only buy this debt if he was going to stay in that -- now emerging, where this guy was in the driver's seat and he steered this company. >> listen, i don't know about jon corzine's guilt in this or not. i know they were in discussions, some people expressed surprise that there was a lawsuit at this juncture. but i will say this, sam,ening they have bang's executives, people are mad that nothing has been done. >> remember when we had the s & l crisis? >> i've studied it, yes. >> mrs. the keaton seven of today? >> nothing will be done? surely there's some appetite to

have changes. >> one or two token prosecutions, but that's it. in general, nothing will be done. >> well, on that cynical note, thank you very much for joining us, sam. and thank you, kayla tausche as well. up next, a big miss for radio shack, but the stock is now positive? >> go figure. we'll find out why. plus the one that will outshine the risk. this thursday, check out our documentary "america's gun, the rice of the ar-15." see had here at 10:00 p.m. it reportedly was used in aurora, colorado. we take it down the middle, speak to victims and law-abiding citizens. pretty powerful stuff. i hope you tune in. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track

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hily truncated street talk into. radio shack, what a wild rival it's had. then it spiked up about 3%, now it's down 1%. pretty much endless, but here's the bad news.

was worse than wall street expectations, margins struck. called the results, quote, a disaster. however, josh limiten and herb greenberg digging in, what analysts like is they found the liquidity position i.e., we've got cash, comforting. that was more street word than a street talk. >> street blather. >> street monolog. , you might have noticed, but some trader still remain bullish. let's find what it is. kate kelley, it is? >> palladium. >> there you go. it has been a tough week or so led by the down draft by gold a week or so ago. a substantial number of traders and analysts are looking to buy pa palladium. likely to press prices higher in the years to come. their chief data point, the fact that palladium is in deficit.

exports from russia, the world's biggest producer are being capped, and mining in south after kaj a close second continuing to be balanced. as china tighten says emission requirements. all in, goldman sachs, for one argues the 2012 slight deficit will increase, ultimately pushing price to closer to 800, anchors. the other thing i want to mention on the breaking news front is that we've got some news on gavelon. it's been in the works to be sold tomorrow for about 5.6 billion, and awaiting approval from the chinese commerce ministry. >> i'm told just recently, the chinese commerce industry gave conditional approval.

they are about to close it deal based on this, probably within the next few weeks, this is a win for the consortium of sellers. >> kate kelly, the afternoonors, thank you. >> you are very welcome, anchors. up next, a new round in the million dollar home competition. a former brothel going up against a mystery mansion. see if you can guess where it is. first, bill? >> two big hours coming up. we're going to look at whether. s.e.c. would rethink its recent stance on allowing companies to report material information through social media in light of the fake a.p. tweet that moved the market big time. coach reporting better than expected earnings, but that stock is down sharply in the last year. the ceo tells us exclusively what he plans to do to get the

momentum going again. all eyes will be on apple tonight. we will have the instant analysis and market reaction to a very highly anticipated report, coming up. maria and i look forward to seeing you at the top of the hour for the all-important last hour of the trade on "closing bell." in the meantime more "streets signs" coming your way. ♪ [ male announcer ] a car that can actually see like a human, using stereoscopic cameras. ♪ and even stop itself if it has to. ♪ the technology may be hard to imagine. but why you would want it... is not. the 2014 e-class.

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welcome to the earnings, we set the stories that everyone is talking about and help you trade the stories you may have missed. joining me are brian shactman and josh lipman. i like to call them double trouble. 69% of the companies beating estimates. we'll hear from a number of companies tomorrow, including one of our biggest gold miners. yum brands relosing the key results in a, the bird flu epidemic expected to weigh on

sales. josh, we did get a glimpse of how bad the impact was when they reported march sales. >> so the street is looking for eps of 60 cents, 21% year-over-year decline, looking for sales here. that's a 7% decline. i was talking to rachel rothman of susquehanna, she covers the stock. to your point, she reminds us it's a china growth story, but same-store sales were falling over before you got the headlines. usually the one-time events, but it's why she says she'll be focused on the implied forward guidance. >> you know, you've been in china so many times, how short a term problem is it? i think that's the key. yum promises double-digit growth, and they almost hit it to a nose. i think they have some read trouble on there. low 60s a week ago will be a good intrigue point. they're getting close. >> that's why the guidance will be key in that sort of

qualitative commentary to whether or not the problem is in fact -- when you report china same-store sales down 13% and down 16% specifically, keep in mind 5300 restaurants in china, more than 4200 are kfc stores alone. so this will be potential ahuge impact. mcdonald's a more burger focused, so they have the benefit if people are trading away from chicken, they'll go to other things. the other thing is kfc, to your point yum brands, trading at a higher multiple. with this pullback from the stock, now it's at a multiple where it's at the same p.e. as mcdonald's. >> good operator, so he'll recover. it's just a question of at what point. >> the intraday high here was 74 last november. let's talk procter & gamble, trading at an all-time high. this is like a broken record.

today ahead of the earnings report. brian, what are you watching? >> first off, a year and a half ago, you would be pretty surprised. they started the cost-consulting regime, $10 billion over four years, plus 4,000 jobs. it's executed and working. basically done by cost-cutting and growing market share. if they're going to keep this going, and a lot of people are starting to say maybe it's overbought, who knows, maybe their revenues need to break out. >> overbought trading at 37% overbought is putting it politely. >> we keep talking about it, but it keeps moving higher, the sore of bond-like equities. 3% dividend yield on this one. >> we're going to watch specifically in terms of line items, a beauty of that area had been a concern, whether or not they actually tweaked their accounts payable and extend the time which they pay suppliers.

that could free up billions potentially. typical for the industry, 60 to 100 days. that could help them. >> and free up about 2 billion in cash. that's expected. >> so that does the earnings squad for today. see you tomorrow. if you want to join the conversation, do tweet us. i'll see you tonight at 5:00 on fast. in the meantime, much more "street signs" is straight ahead.

remember, at one point today, we were down. and at one point, i mean about four minutes on that errant tweet from the ap down 145 points. turned out to be a fake. market came right back. there we are, up 119, the s&p and nasdaq. by the way, if we finish higher today, it will be the 15th straight tuesday where we -- the only other time that the markets have done this, 1927. there's a feel-good stat. >> it really is. something to chew over. in the meantime, all day today on cnbc, we are showing you a million buckeroos can buy you across the country. we sent six cnbc reporters across the planet to check out

multi-million dollar homes. and we have dolly here to crown the top house. great to have you on the show one again. this is how it works. we're going to show dolly two side-by-side million-dollar homes. and to make it a little bit more interesting, we've also asked the reporters not to know where the home is located. only dolly knows where those homes are and she'll do the big reveal after we all get a look. >> we've had three rounds so far where a million-dollar home called the painted lady in highland park, illinois, it used to be a brothel, true story, has beaten out three other million-dollar homes in new england, connecticut, york, parks, and charlotte, north carolina. now in round four, chicago's painted lady tries to make it four for four. goes up against another million-dollar home in a mystery location. cnbc's diana olick is back with the painted lady now up against a home called the english manor, shown by cnbc's julia boorstin. only dolly knows where it's located and we're going to find

out after we take this look at it. >> this three-story, 1890s victorian sits on about a third of an acre with lake access, mature landscaping, a hot tub on the back deck, and a three-car garage. its unique facade is known as a painted lady. >> this two-story english garden style house built in 2007 sits on just over a tenth of an acre. it has an attached two-car carjack, a land skaipd yard, and a wrought-iron front door and balcony. >> this wide-open floor plan boasts 3,700 completely renovated square feet plus a finished basement. it has a back staircase, stained glass throughout, and one of five fireplaces right here in the kitchen. >> at the heart of this 4,400 square foot home is a gourmet kitchen with stainless steel appliances, granite countertops and a trafrtine floofr. >> the stained glass follows you up the bedrooms. you can almost feel it here in

the master bedroom, because this house was once a brothel. >> with a gas fireplace here in the master suite, the house has four bedrooms and 3 1/2 bathrooms. the master bathroom has a dual head shower and a whirlpool tub and his and her walk-in closets. >> the owner here is an expert in stress management, which you can tell from this bonus master bathroom renovation, a desert oasis, complete with a quadruple jet steam shower. asking price, $985,000. >> just off the living room is a covered patio that leads out to the backyard. it has an outdoor kitchen with a built-in gas grill, a wet bar and a refrigerator. it also has surround sound. all this for $1 million. >> wow, so we know from diana earlier today the painted lady is in highland park, illinois. so where is the so-called english manor julia just showed off? >> dolly lens, super broker, where is this house? >> any guesses off the back? >> english manor --

>> i think she's based in l.a.. >> i was thinking new england where you see a lot of that kind of thing, maybe. >> good guess. >> oregon. >> what if i told you, there's a big tax benefit to living in this state. >> nevada. texas. tennessee, wyoming. which one? >> texas. >> where in texas, though. >> houston. >> okay. houston, texas. and i have to tell you, it is an amazing house. julie showed it really well. that orange dress was fabulous. and what would you pick between the two? >> i don't know. >> 4,400 square foot, 3,700 square feet. houston, texas, no taxes, chicago, illinois. >> chicago's a great city. i love chicago, my wife's from chicago, but i've got to go with houston because i like the tax rate. >> and you were just there. >> i was just there, people were nice. i like the kind of semi-spanish style of the home, the gas grill, that outdoor living thing they've got going.

>> it's a great house, great house, great location, houston, texas wins. >> wow! we've dethroned the painted lady. >> the former brothel, and that house, by the way, the other one, is actually, was a former brothel. so the english manor has deflowered the former brothel, so to speak. >> it's almost worth staying in the painted lady to hear the whispering -- >> you can't imagine the number of e-mails i got about it, seriously. but i have to tell you, it's a tough, tough go on this one. okay, both houses are amazing, both houses are in beautiful condition, both houses just are winners. but texas wins. the fact that unemployment in chicago is so much higher than houston, houston, 6%, chicago 9.2. you've got to give it all around, on a financial basis, to houston. >> the english manor wins. sullivan, your manor awaits. >> and folks, it's amazing, a million bucks is a lot of fun.

>> it's more than five times the national average. >> but in manhattan, that's a one-bedroom apartment. look at that house you're getting. folks, move to houston. >> isn't manhattan really america, though? >> the english manor wins round four. do you agree? join the conversation with hashtag -- a twitter term -- #milliondollarhomes. but will it win when it goes head to head with another location, dolly will be on one more time with maria. it's going up against the cozy cottage. >> fantastic. >> next up, who says alleged crime doesn't pay? we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age.

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